Under an agency shop agreement, an employer may hire anyone whether she belongs to a union or not

The financial statements of the Bolton Manufacturing Company reports net sales of $500,000 and accounts receivable of $50,000 and $30,000 at the beginning of the year and end of year, respectively. What is the average collection period for accounts receivable in days?

a. 52.1 b. 29.2 c. 21.9 d. 36.5

Under the terms of a divorce agreement, Ron is to pay his former wife Jill $10,000 per month. The payments are to be reduced to $7,000 per month when their 15 year-old child reaches age 18 . During the current year, Ron paid $120,000 under the agreement. Assuming all of the other conditions for alimony are satisfied, Ron can deduct from gross income (and Jill must include in gross income) as

alimony: a. $120,000. b. $84,000. c. $36,000. d. $0. e. None of these is correct.